Vietnam housing market faces supply gaps and credit concerns

Vietnam is facing challenges in housing accessibility, specifically regarding social and affordable housing. In Ha Tinh, concerns arose among residents of a pilot social housing project in Thanh Sen Ward regarding the availability of preferential loans. While some customers feared the Vietnam Bank for Social Policies (VBSP) had exhausted its 2026 budget, VBSP officials clarified that the issue is a temporary mismatch between high demand and capital allocation rather than a cessation of lending. In the first eight months, the Ha Tinh branch disbursed 336.2 billion VND to 439 customers.

Simultaneously, the Ho Chi Minh City Real Estate Association (HoREA) has proposed legalizing the development of 'affordable commercial housing' within the amended Law on Housing. HoREA noted a severe decline in affordable housing supply; for instance, the number of commercial housing projects dropped from 92 in 2017 to just 6 in 2024. The association highlighted that between 2021 and 2024, no affordable commercial apartments were recorded on the market, with luxury segments dominating the supply. Legalizing this segment aims to support middle-income earners who do not qualify for social housing and to alleviate pressure on state-funded programs.